Are you a potential home buyer? If so, then you probably will purchase the property through the help of a financing service. In most cases, the best option that you have is to take out a hüpoteeklaen (mortgage loan). This particular type of loan is offered by various financial institutions, such as banks, credit unions, and private lenders. One thing to keep in mind though is that, while there are many companies offering such financing services, it does not necessarily mean that everyone who tries to apply for this kind of loan will be approved.
Since a mortgage loan involves a huge amount of money, lenders have to take the necessary steps so that they can also protect their business from potential losses. This is why all of them have a set of eligibility factors that they need to carefully consider. With this being said, before you go ahead and apply for a hüpoteeklaen (mortgage loan), it is wise that you learn more about these requirements.
The Overall Price of a Property that You Really Can Afford
First and foremost, you need to establish the overall price of the property that you wish to purchase and that you can afford. How that you determine this? The safest (not to mention more accurate and realistic) way to do this is to list down all of your outstanding debts and the other existing expenses you have. Factor in your other debts (like a car loan or a credit card loan) and the monthly expenses you have (food, school expenses of your children, and utility bills). Doing so will help you determine just how much you can afford when you buy a home through a hüpoteeklaen (mortgage loan).
Your Income Compared with the Repayments You Have to Make Towards the Loan
After you list down all of your outstanding debts and existing expenses, you can now deduct this from your monthly salary as well as your other sources of income. How much is left? Is it at least two or three times the amount of your expected mortgage loan payments? If so, then you have higher chances of being qualified for the loan. If not, it is recommended that you take a look at other properties that have a lower purchase price. You don’t necessarily have to look for a much cheaper one. You should still purchase a home that you like, seeing that you will be spending a great deal of money on it.
Your Ability to Make a Down Payment towards the Piece of Property You Want to Buy
Last, but not the least, is your own ability to make a down payment towards the home that you wish to buy and live in. Do you have enough savings in your bank account to make a down payment? This is something that most, if not all hüpoteek laen (mortgage loan) lenders actually take into consideration. If you have the ability to do so, you have a higher rate of getting approved for the loan. If no, you may want to consider waiting just until you get enough savings in the bank.